Money Creation: Genesis 1: Before the Goldsmith-Bankers
16 Pages Posted: 6 Apr 2013
Date Written: April 4, 2013
It is a well-establish opinion that money creation has its genesis in the loan activities of the goldsmith-bankers in seventeenth-century London. This is accurate for bank note money, which had its origin in the receipts for precious metal deposits issued by the goldsmith-bankers. However, money creation began in the age before this historic innovation of the goldsmith-bankers.
Keywords: Money, money creation, central banking, banking, monetary policy, economic history
JEL Classification: A22, B15, E42, E51, E52, G21, N13
Suggested Citation: Suggested Citation